EY: The majority of large companies do not yet see what the introduction of the global minimum tax entails

By: Trademagazin Date: 2023. 07. 07. 12:44

The vast majority of large multinational companies will be affected by the global minimum tax, yet only a fraction of them are aware of what it will actually entail if it is introduced next year – draws attention to EY’s international research with 1,600 CFOs. The ever-increasing tasks and the danger of professional burnout of colleagues are forcing tax managers to outsource their financial and tax activities.

Nine out of ten decision-makers expect that the OECD reform (BEPS 2.0), which prevents tax avoidance by multinational companies, will have an impact on their company’s operations. Despite this, so far only every third (30%) respondent has examined the extent to which the company will be affected by the action plan, the central element of which is the global minimum tax that will enter into force in Hungary at the beginning of 2024.

“Here in Russia (and in other countries as well), the global minimum tax is imposed on those company groups and their subsidiaries whose annual consolidated income exceeds 750 million euros” – emphasized András Módos, EY’s tax partner. “Due to the opportunities provided by the rules, the administrative burden will primarily increase for those concerned in Hungary, among other things, because the calculation of the business tax and the innovation contribution is complicated”

he added.